H1 revenues at travel software firm Datalex up by 13%
Company sees further expansion in the pipeline as new clients to come on stream
Travel software firm Datalex said it was confident of further growth in the future with Virgin Atlantic set to go live on its merchandising platform next year. Photograph: Virgin/PA Wire.
Revenues at Dublin headquartered travel software firm Datalex increased by 13 per cent to $17.7 million in the first half of this year.
Earnings before interest, tax, depreciation, and amortisation increased by 18 per cent to $3.1 million in the period and the firm recorded a net profit after tax of $0.2 million, compared to a loss of $0.2 million in the same period last year.
Datalex said sales and marketing costs increased by 10 per cent to $17.4 million in the period , driven by a 14 per cent spike in payroll and contractor costs to $13.1 million.
The addition of airlines Delta and Westjet to its customer base helped Datalex to increase transaction revenue by 11 per cent to $8 million.
Founded in 1985, Datalex is headquartered in Dublin, and maintains offices acrossEurope, the USA and Asia-Pacific.
The company said cash reserves increased by 4 per cent year on year to $11.5 million, but were $3.1 million below where they were at the start of the year. Datalex attributed the fall in its cash position to working capital investment related to new customer deployments but said it was hopeful that the addition of new customers in the second half of the year could help cash rise by 15 per cent for the full year.
The firm said there was fresh business in the pipeline and that Virgin Atlantic was expected to go live on its merchandising platform in the first quarter of next year and that an American carrier was set to take on the full Datalex ecommerce platform in the third quarter before going live in the middle of next year.
Datalex said a new partnership with Hewlett Packard Entereprise Services and a collaboration with big data software firm PROS gave it confidence that it could consolidate its “position as the world’s leading provider of retail software capabilities to the travel industry”.